Fri, May 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund redemption requests for July are low, but reveal investor jitters

Tuesday, June 21, 2011
Opalesque Industry Update – July is typically a heavy month for inflows and outflows as investors look to rebalance their portfolios mid-year. “This June’s GlobeOp Forward Redemption Indicator shows that July redemptions are the lowest they’ve been in the past four years,” said Hans Hufschmid, in a statement released by GlobeOp, the hedge fund service provider.

The GlobeOp Forward Redemption Indicator is published by the firm midway through each month. It is built using the sum of redemption notices received by investors into the hedge funds that GlobeOp provides fund administration services to. The firm notes that “forward redemptions as a percentage of GlobeOp assets under administration have trended significantly lower since reaching a high of 19.27% in November 2008.”

While investors are more confident than they have been since the beginning of the global financial crisis, the cracks in that confidence may finally be showing, as hedge funds struggle to notch serious gains this year. While the GlobeOp Indicator may be down from previous July redemptions, it does reveal that expectations for redemptions at month end have risen slightly from May (up to 4.01% from 3.92%).

While mid-year rebalancing does tend to cause more volatility in asset flows, hedge funds have been steadily increasing assets, a trend managers would be loathe to see reversed. Redemptions notices do not necessarily mean investors will follow through on withdrawing funds, but with indications of lackluster June hedge fund performance July could be an inflection point for continued industry asset growth.

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year